What is Six Sigma and Why is it Important?

Six Sigma refers to a set of techniques and tools that help organizations improve business processes. Organizations maximize performance and reduce product defects, which ultimately leads to higher profits. Introduced in its modern form in 1986, the approach improves quality of output by identifying and eliminating causes of defects. Additionally, it contributes to the reduction of variability in business and manufacturing processes. As such, it remains a firm part of most business degrees, including the business administration program.

The methodology revolves around disciplined and data-driven practices. It achieves the objectives by employing a variety of statistical and empirical techniques. Every project adheres to a series of well-defined steps aimed at reaching specific value targets. Some of the intended targets include improving customer satisfaction, minimizing operating costs, reducing pollution, boosting profits, and reducing cycle time.

Six Sigma can provide a quantitative description of how a business or manufacturing process is performing. The description comes in the form of a statistical representation. To attain Six Sigma, a process must produce less than 3.4 defects per one million opportunities. Defects are defined as any standard outside of customer specifications.

The implementation of a measurement-based strategy is accomplished using two sub-methodologies: DMADV and DMAIC. The Six Sigma DMAIC stands for define, measure, analyze, improve, control. This sub-methodology is used to rectify under-performing processes. DMADV, on the other hand, stands for define, measure, analyze, design, verify. It provides a practical way to develop new products or processes at Six Sigma quality levels.

Six Sigma Principles

Six Sigma principles are:

• All business and manufacturing processes come with a set of characteristics that can be analyzed, controlled, defined, and improved
• Consistency plays an integral role when it comes to reducing process variation, which contributes to the viability of businesses
• Commitment at all levels of an organization is vital for sustained quality improvement

Six Sigma has a clear focus on quantifiable financial returns than any previous quality improvement initiative. Decisions are guided by statistical methods and verifiable data.
It comes as no surprise that by the late 1990s, roughly two-thirds of Fortune 500 organizations had adopted Six Sigma. More recently, some innovative professionals integrated lean manufacturing with the Six Sigma concepts. The combination resulted in a methodology known as Lean Six Sigma.

Implementation Roles

The approach takes quality management from production floors to various levels in an organization. It identifies six principal roles that help ensure successful implementation.

• Executive Leadership – incorporates top-level management. This role entails formulating an effective strategy for implementing the methodology. The Chief Executive Officer (CEO) and board members define roles for personnel at various levels. The directives are aimed at empowering the staff to explore innovative ideas. Staff members are expected to propose breakthrough improvements. The approach breaks down departmental barriers and overcomes resistance to change.
• Champions – consists of innovators drawn from upper management. Champions mentor personnel at lower levels, including the Black Belts. The role is designed to ensure an integrated approach to implementation.
• Master Black Belts – role players at this level are appointed by the Champions to act as in-house coaches. Daily duties for members is focused entirely on the implementation of Six Sigma. They guide personnel on lower levels with the assistance of the Champions. Some of the key roles for Master Black Belts include ensuring consistency across the entire organization and handling statistical tasks.
• Black Belts – responsible for implementing Six Sigma methodology on priority projects. They provide special leadership on project-specific tasks to ensure successful execution. The projects are assigned by Champions and Master Black Belts.
• Green Belts – consists of personnel that handle Six Sigma implementation as part of their daily duties.

Organizations often provide specialized training to personnel assigned to Six Sigma roles. This is aimed at ensuring that implementation is done correctly. The total number of belt levels varies by organizations. Some entities add belt colors, such as yellow, to suit specific requirements.

A number of bodies provide Six Sigma certification with the aim to uphold high implementation standards. These include International Association For Six Sigma Certification and ASQ.

Benefits of Six Sigma for Managers

The approach provides a viable way to create an organizational culture of continuous improvement, which makes the manager's job easier. Increased quality output is associated with improved productivity levels. In turn, the organization achieves its financial targets ensuring overall success. Six Sigma thrives on promoting change by eliminating barriers and inherent resistance.

Managers leverage the creativity of personnel at various levels. This enables the organization to introduce breakthrough changes to business or manufacturing processes. In addition, it becomes simpler to educate staffers in new ways of solving problems and improve production processes.

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